#United States #Austin #PPR Capital #Austin Texas #The Residences

PPR Capital Management Launches First Ground-Up Project in Austin

PPR Capital Management, a well-renowned private equity real estate firm, proudly announces the completion of its inaugural ground-up construction venture, The Residences at Rubi, located in the vibrant city of Austin, Texas. The construction of this 101-unit mid-rise apartment community was initiated in October 2023, representing a financial investment of $21.7 million. This project not only marks a significant milestone for PPR but also reinforces its strategic footprint in one of the fastest-growing markets in the United States.

Development Overview

The Residences at Rubi is characterized by its balanced 50/50 model of market-rate and affordable housing units. This approach leverages Texas's 100% property tax abatement program, which collaborates with the Strategic Housing Finance Corporation to provide essential affordable housing options within the community. According to Steve Meyer, CEO of PPR Capital Management, "The Residences at Rubi exemplifies our commitment to delivering innovative housing solutions that create value for both residents and investors. This project showcases our ability to execute sophisticated plans that meet community needs while generating attractive returns through strategic financing structures."

The choice of location for The Residences at Rubi is particularly strategic, offering residents easy access to downtown Austin and the Austin-Bergstrom International Airport. Additionally, its closeness to important employers makes it appealing for a diverse variety of renters.

Market Insights and Growth

Austin's housing market remains robust, supported by strong fundamentals such as population growth and an expanding job market. This favorable landscape allows developments like The Residences at Rubi not only to thrive but also contribute to the long-term stability of the community. Craig Johnsen, Chief Asset Officer at PPR, highlighted, "The Austin market continues to demonstrate strong fundamentals with its expanding employment base and population growth. The Residences at Rubi's mixed-income model not only accelerated our lease-up timeline but also positions the property for long-term stability."

Collaborators and Partnerships

PPR Capital played a crucial role in the financing of The Residences at Rubi by contributing $11.7 million of the total $12.4 million equity investment. The project was brought to life through collaborations with multiple partners, with Notional Development Partners acting as the general partner. IE2 Construction handled the construction, while the Strategic Housing Finance Corporation was integral in implementing the property tax abatement structure. Spire Project Management oversaw project management; Avita Property Management is responsible for property management and lease-up activities.

Chris Affinito, Managing Partner at Notional Development Partners, expressed satisfaction with their partnership with PPR. He stated, "Our collaboration on The Residences at Rubi has been exceptional from groundbreaking to completion. Together, we've created a community that meaningfully contributes to Austin's housing ecosystem while establishing a blueprint for future affordable housing developments in high-growth markets."

PPR Capital Management: A Commitment to Community

Founded in 2007, PPR Capital Management focuses on investing in distressed assets and real estate across the United States, aiming to enhance financial wellness for its investors and positively impact the communities it serves. The successful launch of The Residences at Rubi highlights PPR's mission to provide viable housing solutions while delivering exceptional value to its investors.

For more information on PPR Capital Management and its projects, please visit their official website at prcapitalmgmt.com.